The diagram below represents the market for education. Assume that education provides several external benefits. a. Using the diagram, show the social demand curve for this market. Instructions: Use the tool provided 'Social value' to plot this line on the graph. Plot only the endpoints of the line. Tools Supply Private Social value Demand Private Price

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
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The diagram below represents the market for education. Assume that education provides several external benefits.
a. Using the diagram, show the social demand curve for this market.
Instructions: Use the tool provided 'Social value' to plot this line on the graph. Plot only the endpoints of the line.
Tools
Supply Private
Social value
Demand Private
Price
Transcribed Image Text:The diagram below represents the market for education. Assume that education provides several external benefits. a. Using the diagram, show the social demand curve for this market. Instructions: Use the tool provided 'Social value' to plot this line on the graph. Plot only the endpoints of the line. Tools Supply Private Social value Demand Private Price
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  1. A government scholarship program would be designed to shift the                 curve to the           .

 

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